Don’t Be Intimidated if a Credit Card Company Threatens to Sue You

Before your financial situation got as bad as it is, you used to read long-form articles on news websites about the horrible abuses that consumers suffer at the hands of debt collectors, whether those debt collectors represent credit card companies or healthcare providers that provided services with the full knowledge that the patient could never afford to pay the sticker price. Most of the worst stories, where collection agencies that had bought debts that had changed hands numerous times garnished consumers’ paychecks or where consumers underwent humiliating debtors’ exams under oath in court, took place in the Deep South. 

You read them with a sense of voyeuristic Schadenfreude, thinking it would never happen to you. You live in California, which has some of the strongest consumer protections anywhere in the country. 

Yes, California’s consumer protection laws almost all exceed the minimum standards set by federal laws, but debt collection lawsuits can happen in the Golden State, too. If a creditor has filed a lawsuit against you or is threatening to sue, contact an Oakland lawsuits, collections, and creditor harassment lawyer.

Defenses to Debt Collection Lawsuits

How bad is the worst-case scenario if a credit card company sues you over an unpaid bill? The worst that can happen is that the creditor wins, and then the court authorizes the creditor to garnish your paychecks until the debt is repaid. That can only happen after many dominoes fall, one of which is the creditor winning the lawsuit.

In debt collection lawsuits, as in any kind of lawsuit, you as a defendant have the right to present defenses to cast doubt on the plaintiff’s claims to entitlement to payment from you. These are some defenses that might apply in your debt collection lawsuit:

·       The statute of limitations has expired. In California, the statute of limitations for debt collection lawsuits is four years, counting from the last time the debtor made a payment or promised to make a payment.

·       The plaintiff cannot prove that you owe the debt.  This defense can apply if the plaintiff is a collection agency. In order to have a chance of winning the case, the plaintiff must show a clear chain of ownership of the debt, whether it bought the debt directly from the credit card company or from another collection agency.

·       The plaintiff did not follow the rules indicated in the Fair Debt Collection Practices Act.

·       Your account incurred the debt because you were a victim of fraud or identity theft. Therefore, you are not responsible for the fraudulent charges.

If you make these defenses convincingly, the court might rule in your favor or even dismiss the lawsuit before it gets to trial.

Take Action Before the Credit Card Company Sues You

The best response is to address your debt before the creditor sues you.  You can do this by settling the debt directly with the creditor, by taking out a debt consolidation loan if you qualify for one, or by filing for bankruptcy protection.

Contact the Law Office of Melanie Tavare About Defending Yourself Against Debt Collection Lawsuits

A debt relief lawyer can help you if you are facing threats of lawsuits because of your credit card debt. Contact the Law Office of Melanie Tavare in Oakland, California, or call (510)255-4646 for a case evaluation.